HB 24-1324

House Bill 24-1324, which has been approved by the governor and will take effect on August 7, 2024, gives the Colorado Attorney General the power to create rules about restrictive employment agreements. These rules will ensure that when employers provide training to workers, the training must be transferable or lead to a credential recognized outside of the company for it to be recoverable as debt if the worker leaves early. This bill affects both employers and employees by setting clearer guidelines on what types of training expenses can be recovered from workers who leave their jobs before completing an agreed-upon period.

Official Summary

The act grants the attorney general rule-making authority over restrictive employment agreements. Current law allows an employer to recover the expense of educating and training a worker where the training is distinct from normal, on-the-job training. The act regulates the recoverable expense as other consumer debt and student debt. The act also adds the requirement that, for an employer to recover the expense, the training must comply with rules promulgated by the attorney general regarding the transferability of the training or credentialing that is available to the employee as a result of the training. APPROVED by Governor May 31, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

Votes